Commission Split Question

[Evan]

Hey Guys,

Needed your input here. I am newly licensed with my P & C license and looking for an agency here in South Florida. The main product I want to offer is property insurance.

I have an offer to work with my buddy at Allstate with a commission split of 50/50. I would be finding, quoting and doing all work for these clients. Is this a common deal in the industry or is he being greedy.

Thanks,

 

[Arnage150]

That's a pretty good split considering you are bringing nothing to the table (book of business or experience). Eat what you kill baby!

 

[Evan]

Even if he'd be receiving half my commission for my clients? I wouldn't be getting anything from him-commission wise.

 

[kgamarketing]

Even if he'd be receiving half my commission for my clients? I wouldn't be getting anything from him-commission wise.

Is he the agency owner or just an agent of the brokerage? Im thinking more like a 70/30 split your favor makes more sense.

 

[Evan]

He is the agency owner. There are no other agents working with him.

 

[kgamarketing]

He is the agency owner. There are no other agents working with him.

I would ask for 70+% unless he is willing to give you a salary, than that changes the ball game.

 

[Evan]

Dont' want or need a salary. Thanks for the input

 

[insurancemansam]

Every area is different. In MN that's terrible.

 

[MGBAgency]

If you have to work on commission only make sure you get residuals. Also, 50% is low for omly commission because your buddy has literally zero cost associated with a 1099 all commission employee. We pay 75% new business 75% renewal... because it's all profit to us.


QUOTE=Evan;1136510]Hey Guys,

Needed your input here. I am newly licensed with my P & C license and looking for an agency here in South Florida. The main product I want to offer is property insurance.

I have an offer to work with my buddy at Allstate with a commission split of 50/50. I would be finding, quoting and doing all work for these clients. Is this a common deal in the industry or is he being greedy.

Thanks,[/QUOTE]

 

[cottonland]

If you have to work on commission only make sure you get residuals. Also, 50% is low for omly commission because your buddy has literally zero cost associated with a 1099 all commission employee. We pay 75% new business 75% renewal... because it's all profit to us.

How is it all profit to you? Are you servicing the accounts? If so, then what % do you attribute to expenses and in addition to that, opportunity costs?